Consumer Insights Exam 1

what are some strategies marketers can use to increase consumers' involvement with their products?

-Advertising during programming where viewer are highly engaged, will be more receptive to process the information -Mass customization, market to the individual. customizing a PC, m&m with faces to connect with audience. -Getting the customer to participate in the process of a products life cycle. coke / maroon 5

common needs

-achievement -affiliation -power -uniqueness

cognitive decision making model perspectives

-information processing -economics of information

perceived risks of decision making process

-monetary -functional -physical -social -psychological *the more risks the more involvement necessary

steps in the model of cognitive decision making

-problem recognition -information search -evaluation of alternatives -product choice -outcomes (in a loop)

Assumptions about consumers

-rational -well-informed -preferences are consistent -preferences are independent of others -production and consumption of goods have no 'external' effects -there are complete and competitive markets in alternatives to consumption (PEOPLE ANSWER TO MAKE THEMSELVES LOOK GOOD)

cognitive decision making model assumptions

-rational consumer -motivated consumer -available cognitive resources -available time

why do we buy?

-to satisfy needs and wants (maslows hierarchy of needs) -because of what products mean/symbolize (nostalgic attachment, interdependece) -to make a lifestyle statement -cultural influence

three types of decision making

1. Cognitive: deliberate, rational, sequential 2. Habitual: behavioral, unconscious, automatic 3. Affective: emotional, instantaneous

name two ways in which a consumer problem arises

1. Ideal State (opportunity recognition): ex someone who dosent like their car anymore and wants a newer flashier one even though mechanically there is nothing wrong with their current car 2. Actual State (need recognition): ex running out of gas

cognitive decision making process

1. problem recognition 2. information search 3. evaluation of alternatives 4. product choice 5. outcomes 6. restart

what is the difference between sacred and profane consumption? an example of each

1. when we set apart objects and events from normal activities and treat them with respect or awe (celebrtities, royalty, mecca, sport event) 2. describes objects and events that are ordinary or everyday; they dont share the same "specialness" as the other

what is the difference between a noncompensatory and compensatory decision rule? one example of each

A noncompensatory rule is used when we make habitual or emotional decisions. If an option doesn't suit us on one dimension, we reject it and move on to something that better meets our needs. An example is "i've never heard of that brand". A compensatory rule is used in high-involvement situations. It allows us to consider each alternative's good and bad points more carefully to get the overall best choice. An example of this is choosing between two different products.

what is the purchase momentum and how does it relate (or not) to the model of rational decision making

A purchase momentum is the initial impulses to buy in order to satisfy our needs increase the likelihood that we will buy them even more. It does not relate to the model of rational decision-making because if you act on your purchase momentum, you did not take into account any of the steps that are needed to make a rational decision.

list three stages of a ritual

GESTATION (the giver procures an item to mark some event) PRESENTATION (the recipient responds to the gift, and the donor evaluates this response) REFORMULATION (the giver and receiver redefine the bond between them to reflect their new relationship after the exchange)

hedonic versus utilitarian motives

Hedonic goods are consumed for luxury purposes, which are desirable objects that allow the consumer to feel pleasure, fun, and enjoyment from buying the product. This is the difference from Utilitarian goods, which are purchased for their practical uses and are based on the consumer's needs.

what is culture? list three dimensions that social scientists use to describe a culture and give an example of each

Is a society's personality; it shapes our identities as individuals. It is also the accumulation of shared meanings, rituals, norms, and traditions.

hierarchy of needs

Maslow's pyramid of human needs, beginning at the base with physiological needs that must first be satisfied before higher-level safety needs and then psychological needs become active

why do we say that mindless decision making can actually be more effective and efficient than devoting a lot of thought into what we buy

Mindless decisions can cut down time that could be used for something else and overthinking starts to come into the equation as well and we will talk ourselves out of the decision all together.

habitual decision-making

Occurs with little to no conscious effort; routine decisions

"People often buy products not for what they do, but for what they mean" what does this mean

This principle does not imply that a product's basic function is unimportant, but rather that the roles products play in our lives extend well beyond the tasks they perform. The deeper meanings of a product may help it to stand out from other similar goods and services.

situational involvement

a consumer's interest in the consumption experience based on their reality in the moment or particular store, website or location where they consume a good or service

product involvement

a consumers level of interest in a particular product

what does global consumer culture mean

a culture in which people around the world are united through their common devotion to brand name consumer goods, movie stars, celebrities and leisure activities

consumer involvement

a person's perceived relevance of the object (brand, product, ad, purchase situation, etc) based on their inherent needs, values, and interests

what is a ritual? describe three kids of rituals and provide an example of each

a set of multiple, symbolic behaviors that occurs in a fixed sequence and is repeated periodically

Heuristic

a simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than algorithms (EMOTIONAL SHORTCUT)

what makes myths special?

a story with symbolic elements that represents a culture's ideals; the story often focuses on some kind of conflict between two opposing forces, and its outcome serves as a moral guide for listeners; reduces anxiety because it provides consumers with guidelines about their world

what is the exchange

a transaction in which two or more organizations or people give and receive something of value- an integral part of marketing

psychographics

attitudes, opinions

what is big data

collection and analysis of extremely large data sets

role of emotion

consumers are inherently emotional

inconsistency as important aspect of behavior

consumers lives and situations changing -> crave challenge

consumption as inherently social

consumers want to belong

Priming (decision making short cut)

cues in the environment that make us more likely to react in a certain way (i.e. people who saw apple logo more creative, people who saw ibm more logical)

hedonic needs

desirable objects that allow the consumer to feel pleasure, fun, and enjoyment from buying the product

message involvement

different qualities media vehicles/messages possess that may influence motivation to pay attention

what is popular culture and how does this concept relate to marketing and consumer behavior?

forms of entertainment that the mass market produces and consumes. a lot of times it tells consumers how to act

give an example of the type of purchase that each of the three types of decision making would most likely explain

habitual- weekly groceries (low involvement) cognitive- a car (high involvement) affective- i'm sad i'm going to get this ice cream

why do marketers have to understand the wants and needs of different consumer segments

helps marketers become more attuned to the wants and needs of consumers, which increases awareness in how to reach them best

frequency of use

high involvement (more likely to be cognitive) no involvement (more likely to be habitual)

why is consumer behavior a process

it is the study of all of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas etc. to satisfy wants or needs. they may go through these steps but different people may perform these functions. we can think of consumers as role players who need different products to help play their various parts

list three types of perceived risk and give an example

monetary risk: not having enough money to purchase something physical risk: mechanical and electrical goods psychological risk: expensive personal luxuries that may engender guilt

"marketers need to be extra sure their product works as promised when they first introduce it" how does this statement relate to what we know about consumers' evoked sets

people are more likely to add a new brand to the evoked set than one that we previously considered but passed over, even after additional positive information has been provided for that brand. For marketers, consumers unwillingness to give a rejected product a second chance underscores the importance of ensuring that it performs well from the time it is introduced.

what is consumer involvement? how does this concept relate to consumer decision making?

person's perceived relevance of the object based on inherent needs, values and interests. Involvement is used to describe the level of consumer interest, search, or complex decision making toward an object.

consumer behavior: a process

prepurchase, to purchase, to past purchase, back again

utilitarian needs

purchased for their practical uses and are based on the consumer's needs.

example of sunk cost

sitting through bad movie because you paid for it

nudging (decision making short cut)

subtle changes in a consumers' environment can change behavior (i.e. switch from asking consumers to opt in and instead to opt out)

what is market segmentation? give three examples

targeting a brand to only specific groups of consumers who share well-defined and relevant characteristics such as 1) interests 2) lifestyle 3) gender

define product placement and list three examples. how is it the same or different from branded entertainment

the insertion of real products in fictional movies, TV shows, books, and plays

what are demographics? give three examples

the observable measurements of a populations characteristics, such as 1) birthday 2) age 3) race

definition of consumer behavior

the process involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs/ desires

market segmentation

the process of targeting an organization's product, service or idea only to specific groups of consumers rather than to everybody

motivation

the process that leads people to behave as they do -occurs when a need is aroused that the consumer wishes to satisfy

what is role theory

the theory that people in a society behave in organized ways because they act in accordance with the behavior expected of those in their social position

why is it important for businesses to learn about their heavy users

these are the consumers that are most faithful to the business and spend the most money

involvement reflects level of motivation

to gain information, solve a problem, reach a goal

goal of decision making

to solve a problem or satisfy a need

presence of incomplete information

too much info circulating to ever be fully informed